Integrys Energy to buy alternative fuel developer Fox Energy for $440 mn
01 Oct 2012
US-based Integrys Energy Group today said that its subsidiary Wisconsin Public Service Corporation (WPS) will acquire alternative fuel developer Fox Energy Co for $440 million.
The purchase price includes $390 million for Fox Energy Centre, a 593-megawatt combined cycle generating facility in Kaukauna, Wisconsin, and $50 million for terminating an existing tolling agreement, Integrys said in a statement.
Fox Energy, owned by subsidiaries of GE and Tyr Energy, is a pioneer in the development of new fuels and alternative fuel projects.
The company's aim is to develop a coordinated production, processing, transportation, distribution, merchandising, and support service to facilitate the integration of agriculturally produced fuels with petroleum to extend the volume of available fuels to American motorists.
Its current activities include a pipeline terminal with 20 million gallons of storage capacity, nursery for the Jatropha, Jatropha seed feed stock, crushing plant, shipment to a US oil refinery, shipment to the terminal marketing and distribution of product into the market and the development of Pyrolysis oil.
The Fox Energy Centre is a dual-fuel facility, equipped to use fuel oil but expected to run primarily on natural gas. Adding this plant to its portfolio will give WPS a more balanced mix of electric generation, including coal, natural gas, hydroelectric, wind, and other renewable sources.
"This deal makes sense for our customers on several levels," said WPS president, Chuck Cloninger. "The acquisition will add diversity to our generation fleet, enhance supply and pricing options for the company, and allow us to better manage our generation assets and the overall cost of energy for our customers' benefit."
Chicago, Illinois-based Integrys Energy is a diversified energy holding company with regulated natural gas and electric utility operations serving customers in Illinois, Michigan, Minnesota, and Wisconsin.
